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Relevant values of present business leader NARAYAN MURTHY and their role models for corporate governance

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NR Narayana Murthy is a man who doesnt need any introduction. He is perhaps the ultimate role model for every aspiring software professional and entrepreneur.

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Born

in Mysore, Karnataka on

20

August 1946, Murthy graduated with a degree in electrical engineering from the National Institute of of Mysore in Engineering,University from IIT Kanpur in 1969.

1967. He received his master's degree

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Awards and Achivements:

PadmaShri Government of India Padma Vibhushan Government of India Officer of the Legion of Honor Government of France Order of the British Empire Government of United Kingdom.

Narayana Murthy served as the President of National Association of Software and Service Companies (NASSCOM), India from 19921994.

2012:

Fortune's 12 Greatest Entrepreneurs of our Time Fortune Magazine

REASONS FOR SUCCESS:

Invest

in well understood, proven products & not just R&D.Given bad news proactively & early.Speed, imagination

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stakeholders

&

excellence.Leaders in the making.Respect for the competition.

Narayan

murthy is a visionary who applied his leadership skills to built one of IT company in India.Stress on building & maintaining

the biggest world.

relationship.Innovation is only means to sustain customer loyalty in a flattening

MURTHY

GLOBAL STRATEGY:

Global delivery model:Producing where it is most cost effective to produce & selling where it is most profitable to sell.Moving up the value chain.

NARAYAN MURTHY AS A ROLE MODEL:

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Simplicity a low profile

Humility Maintaining

are the hallmarks of this super-rich Bangalorean.

On Value:
Mr.

Murthy has always highlighted importance of a

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value system in an organization.

Compliance

to

value in future

systemcreates fundamental and the

the

environmentfor people to have high aspirations, self-esteem, confidence in belief the values, enthusiasm

necessary to take up apparently difficult tasks.

What

he's really stressing here is that having a

value system is not all. Leaders have to follow it themselves and thus lead by example. As they say,

Key Success Factor:

Leadership:

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First

of Great

all, leaders

you raise

need the

good leadership.

aspirations of their followers; they make people more confident, energetic and enthusiastic.

Vision:

You

have

to

create

grand, the

noble vision whichelevates

energy, enthusiasm and self-esteem of everyone in the company while ensuring that everybody sees a benefit in following the vision.

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Measuring

To Improve:

A great company continuouslymeasures and improves the following attributes: meritocracy, fairness, justice, openness, speed , imagination and excellence in execution.

Shared

Values:

A great company practices an enduring value system, and follows the finest system of corporate governance.

Benchmarking: Your

company has to benchmark itself on a global scale in every area

including sales, production, human resources, R&D and finance. It creates an open and confident environment where first-raters recruit first-raters.

30 Values To Be Learnt from Narayan Murthy:

Seize You

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Your Gandhi Moment

might fail, but get started Learn from

mistakes and move on.

Think Cut

Big. Dont Hesitate to Start Small

Yourself a Slice, Not a Large One

Always
Own Trust Keep

Up, and Then Clean Up in God, But Verify with Data the Faith

Lend Hire

a Hand and Throw in a Foot Too.

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a Good Accountant, Even if he is

Argumentative
When Leave Dont Make

in Doubt, Disclose the Family Out be a Push over hay While the Sun Shines First, Get Clinical

Brand-aid Mind

your Business, youll See Things

Coming

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Talent Hold Give, Do

Spotting and Division of Labour

on to Your People but dont Cling it only gets you more

it First and Do it Right of Being a Poster Child

Perils Get Do

Rich. Honestly

Not be Afraid to Court Controversy in Learning Lose the Common Touch

Invest Never

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On Being a Successful Entrepreneur

Mr

Murthy suggests these four essential

qualities for entrepreneur to make it big:

Passion Giving

and will to persevere

more priority to the long-term

interests
High

levels of optimism and high aspirations a team player

Being

When we started our business, there were already well-

established business leaders who had founded and expanded their companies while sticking to sound ethical principles, says Mr Murthy.

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On People He Looked up to

People like JRD Tata Das Birla (Birla Group),

Ghanshyam Laxmanrao T.

Kirloskar (Kirloskar Group)

V. Sundaram Iyengar (TVS Group) were his role models at that

time.
He

alsoadmired Bill Gates, and trio of Intel founders Gorndon E.

Moore, Robert Noyce and Arthur Rock.

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Views on Business Ethics

By

making

business

ethics

its

unique

selling

proposition, a company can accelerate its profit making process.

Business principles:

ethics

incorporates

certain

issues

and

Transparency Accountability Honesty Trust

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Corporate governance
"Corporate

governance is about maintaining an appropriate balance of accountability between three key players:
1) 2) 3)

the corporation's owners, the directors whom the owners elect, and the managers whom the directors select.

Accountability requires not only good transparency, but also an effective means to take action for poor performance or bad decisions."

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What is corporate governance

The

primary purpose of corporate leadership is to

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create wealth legally and ethically.

This

translates

to

bringing

high

level and

of the

satisfaction to five constituencies -- customers, employees, investors, vendors society-at-large.

The

raison d'tre of every corporate body is to predictability, sustainability and

ensure

profitability of revenues year after year.

Narayan Murthy committee report 2003

The committee on corporate governance was set up by SEBI under the chairmanship of N.R.Narayan Murthy which submitted its report in February 2003 was yet another committee on the subject signifying the regulators anxiety to expeditiously promote corporate governance practices in Indian companies.

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The

committee terms of reference were the

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The

committee came out with two sets of recommendation namely, mandatory recommendations and non-mandatory recommendations. mandatory recommendations focus on strengthening the responsibilities of audit committees, improving the quality of financial disclosures including those pertaining to related party transactions and proceeds from related public offerings.

The

Terms and conditions proposed by the committee

1)

In case of the appointment of a new director or reappointment of a director, the shareholders must be provided with the following information:
a) b) c)

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A brief resume of the directors. Nature of his expertise in specific functional areas. Names of companies in which the person also holds the directorship and the membership of committees of the board.

2)

Quarterly result and presentation made by companies shall be put on companys website.

3)

To expedite the process of share transfers the board of directors shall delegate the power of share transfer to an officer or a committee or to the registrar and share transfer agents.

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Two mottos
1)

Two Sanskrit sentences: Sathyannasti Paro Dharma (there is no dharma greater than adherence to truth); and

2) )

Satyameva jayate (truth alone triumphs). Let these be your motto for good corporate leadership.

Ethics in Corporate Governance

Ethics

in Corporate governance means the parameters which a company sets for itself for its functioning. and disclosures about accounts as well as other important issues have to be communicated to the stakeholders in a truthful and prompt manner. build marketplace. up confidence and trust in the

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Transparency

These

As

consumers are getting increasingly aware of ethical issues, corporations have to respond to their concerns whether it is related to issues of environment, heath

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